Bitcoin Goes Back to $40K and More; Next Resistance at $45K-$50K

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Powerful up above resistance might control price rallies into next week. Bitcoin (BTC) is testing resistance near $40,000 after many breakout attempts over the past three months. The Bitcoin short-squeeze rally lost some momentum this week. However, the downside looks
restricted around the $34,000 to $36,000 Bitcoin support zone.
The analysts saw the next level of resistance at the 200-day moving average near $45,000. An accomplishing breakout cloud yields a primary upside target towards $50,000-$55,000.
Moreover, Bitcoin was trading around $40,7540 at the time of this news and it is up 6% over the past 24 hours.
  • The relative strength index (RSI) is decreasing from overbought levels. Which this could cheer some profit-taking around resistance levels.
  • Bitcoin’s intermediate-term trend is getting better after keeping support above $30,000 over the past three months.
  • A decisive move above the 200-day moving average would free the downtrend since April. However, the strong overhead resistance might limit price rallies into next week.

Bitcoin Seasonal Patterns

Similar to stocks, Bitcoin is reaching a seasonally weak period. Which can cheer buyers to take profits. The table below indicates, on average, relatively weak returns in August over eight years. September attends to be the worst month. Buying picks up in October and February.
In addition, seasonal patterns might be different, especially as bitcoin departed from its historical trends when it tumbled in May.

Bitcoin Seasonal Patterns

Bitcoin Seasonal Patterns

“The most important implication of this is that longs don’t have the added boost of holding both spot BTC and BTC futures while it goes up, but they’re no longer exposed to deeper losses when their position turns against them (because their margin is in stablecoins, not BTC),”. This was what Delphi wrote. “For shorts, they can take advantage of downtrends without their margin value eroding, but they lack protection when BTC moves up.” Delphi continued the writing.
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